Executive Performance Compensation
3 X CD
aligns executive compensation with company performance using audited financial
data. A Pay-for-Performance approach ensures protection of shareholder interest
and compliance with corporate governance guidelines.
The CEO Compensation Audit tests compensation design; performance based
compensation payout; and compares compensation to financial performance. If the
plan is proven to be sound, recommendations will support this, otherwise
alternate recommendations will be provided for consideration.
A CEO Compensation Audit can be expanded to assess pay-for-performance linkage
of other executives within the executive team of the company.
Key Board Issues When Establishing Executive Pay Levels include:
Do we have the appropriate peer group(s)?
Should we use more than one peer group ?
Are we comparing pay for equivalently complex jobs?
Are we offering the appropriate incentive packages for our executives?
What are the real incentive trends in our market?
How do we retain our value while ensuring our shareholders are protected?